Sanara MedTech Inc.

Worth knowing

• Profit looks boosted by one-off gains. Reported profit is 3.7× operating cash profit (EBITDA), lifted by income outside the core business.Reported profit is 3.7× operating cash profit, lifted by income outside the core business.

  Sanara MedTech's reported profit is 3.7× its operating cash profit (EBITDA), which is unusual: normally it's the other way round. Income outside the core business, such as interest on a large cash pile, gains on investments or asset sales, or tax items, has lifted net income, so its earnings-based valuation may look cheaper than the business alone justifies.Sanara MedTech's reported profit is 3.7× its operating cash profit, which is unusual: normally it's the other way round. Income outside the core business, such as interest on a large cash pile, gains on investments or asset sales, or tax items, has lifted net income, so its earnings-based valuation may look cheaper than the business alone justifies.

• Shareholders being diluted. Shares outstanding up 11% from December 2022 to August 2026.

  Sanara MedTech had 11% more shares at August 2026 than at December 2022, mostly from issuing stock (for pay, acquisitions or fundraising). Each existing share now owns a smaller slice of the business.Sanara MedTech had 11% more shares at August 2026 than at December 2022, mostly from issuing stock. Each existing share now owns a smaller slice of the business.

• Profit isn't fully turning into cash. Free cash flow is only 10% of reported profit.

  Free cash flow is only 10% of reported profit. That usually means heavy spending on facilities and equipment, or cash tied up in inventory and unpaid bills. Worth checking whether it's a phase of investment or a lasting pattern.

• Much more borrowing than peers. Debt is 5.9× equity vs a peer median of 0.2×.Debt is 5.9× equity vs peers 0.2×.

  Debt is 5.9× shareholders' equity, against a peer median of 0.2×, among the highest 10% of its peer group.Debt is 5.9× shareholders' equity, vs peers 0.2×, among the highest 10% of its peer group.